Bonds backed by consumer debt such as auto loans, credit card payments and student loans are increasing in risk as underwriting standards loosen, warns Moody's. Complicated structures and new market participants are also adding to the risk. "[W]e are now seeing the beginnings of credit loosening, which is normal. But as underwriting loosens, we need to make sure we're keeping an eye on investor protections in these deals," says Claire Robinson, head of new-issue structured finance ratings at Moody's.

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